Endowment Fund

Endowment Fund  Committee:

• Chair: Teresa Boshart Yoder 2020
• Aili Huber
• Larry Miller

Purpose
The Community Mennonite Church (CMC) Endowment Fund (the “Endowment Fund”) will receive and administer long term gifts to CMC. It provides a vehicle for gifts above and beyond budgeted giving to be invested and used to further the ongoing mission of CMC within the following guidelines. More specifically, the purpose of this Endowment Fund is to support the CMC ministry. This fund can also be used as a savings account for funds to be invested but not allocated to a particular subaccount for regular distributions.

• Administration
  • 1. The Endowment Fund Committee
    • A. The Endowment Fund Committee shall have the following responsibilities:
      • (1) Administer the Endowment Fund according to these guidelines.
      • (2) Promote the Endowment Fund to CMC members to encourage contributions to and requests for distributions from the Endowment Fund.
    • B. The Committee shall consist of the Chair of the Church Council, Administration Commission Chair, and up to three (3) members from the congregation at large. At-large members shall be approved by the Church Council. Initial at-large appointments shall be for terms of one (1), two (2) and three (3) years respectively so that each year the term of one at-large member of the Committee expires. Subsequent appointments shall be for three (3) year terms.
    • C. The Endowment Committee shall appoint a chair from among the at-large members. The chair shall serve a one (1) year term, but can be reappointed for multiple terms.
    • D. The Endowment Committee chair, the chair of the Church Council, and the Administration Commission Chair shall be empowered to sign any legal documents necessary to carry on the administration of the Endowment Fund.
  • 2. Endowment Fund Investment Management
    • The Endowment Fund shall be invested consistent with the beliefs and mission of CMC.
    • Investment management of the Endowment Fund will initially be provided by The Mennonite Foundation, 1110 North Main Street, Post Office Box 483, Goshen, IN 46527; the investment manager may be changed at the discretion of the Endowment Committee. The Endowment Committee is responsible to develop an Investment Policy Statement in consultation with the investment manager, to be reviewed and approved by the CMC Church Council from time to time.
  • 3. Complex Gifts
    • Special gifts requiring expertise in management and charitable tax law may be referred to Mennonite Foundation to handle for the benefit of the Endowment Fund.
  • 4. Fiscal Year
    • The Endowment Fund’s fiscal year shall commence on January 1 and conclude on December 31.

Contributions to the Endowment Fund

1. Gifts may be anything of value: cash, bequests, real estate, bonds, mutual fund shares, farm commodities, livestock, promissory notes, or other assets on which a fair market value can be placed.
2. Gifts other than cash will normally be liquidated by the Endowment Committee and the cash proceeds deposited in the Endowment Fund account. The services of the Mennonite Foundation may be used to assist in this process.
3. The Endowment Committee shall have the right to refuse a gift that is inappropriate or impractical for the Endowment Fund and/or not in keeping with the mission and vision statements of CMC.
4. Gifts to the Endowment Fund may be given to the office, to the Church Treasurer, or to the
   Endowment Committee chair. Desire for anonymity will be strictly respected.
5. Contributors to the Endowment Fund freely forfeit ownership of contributions and no portion of the contributions or earnings from them may ever revert to or be used by any individual, but will remain the property of the Endowment Fund, to be used in accordance with these guidelines.
6. Gifts may be designated if the Endowment Committee determines the designated use is in keeping with the mission and vision statements of CMC. We recommend that donors discuss potential designated gifts with the endowment committee chair prior to completing the gift.
   Current subaccounts available for designation include the following:
   a. Permanently Restricted principal– The earnings are used to help cover operations cost on
   a yearly basis. Earnings not used in a given year will be added to the principal.
   b. Facilities / Building Fund – used to provide adequate facilities for the ministry of CMC.
   These funds will be used for future building and/or improvement projects approved by
   the Church Council. Principal and earnings can be used for projects as approved by the
   Church Council.
   c. Additional subaccounts may be established by the Church Council based upon ministry
   needs and donor interest.
7. Initial funding of the Endowment Fund subaccounts will include the following:
   a. Permanently Restricted principal – as of _______ this subaccount is funded with
   $______.
   b. Facilities / Building Fund – as of ________ this subaccount is funded with $_______
   from Church Council designated funds.
8. Tax Benefits
   Since the Endowment Fund is a charitable activity of CMC, contributions to the Endowment Fund may qualify for certain tax deductions based upon individual circumstances. For specific tax guidance, a qualified tax consultant should be consulted.

Distribution of Endowment Funds (Distributions from The Mennonite Foundation can only be
made upon the official request of the Authorized Person(s) listed on the Endowment Account.)

1. The Permanently Restricted principal – the earnings from the Permanently Restricted principal Fund as of the close of business on December 31 can be distributed at any time during the following year.
2. Facilities/Building Fund – up to 100% of the balance shall be eligible to be distributed at any time upon the decision of the Church Council for future building and/or facilities improvement projects.
3. Additional Subaccounts will be distributed according to guidelines created at the creation of the subaccounts.

Reporting
A report of all funds invested and Endowment Fund income disbursed shall be part of the annual financial reporting to the congregation. Individual donors will not be identified if anonymity is requested.
This report is the responsibility of the Endowment Committee.

Changes to These Guidelines

1. Changes may be made to these guidelines only by congregation action. Any request for change should be submitted to the Endowment Committee. The Committee shall review the proposed change and make a favorable or unfavorable recommendation to the Church Council.
2. The Church Council shall then determine whether to place the proposed change on the agenda for the next congregation meeting. Any proposal for change to these guidelines must be published at least two (2) weeks prior to a Congregation meeting and receive a favorable vote from a majority of the members present at said meeting.

Termination of the Endowment Fund
1. Procedure
The Endowment Fund may be terminated and dissolved only by action of the congregation. Any
proposal for termination of the Endowment Fund should be submitted to the Endowment
Committee. The Committee shall review the termination proposal and make a favorable or
unfavorable recommendation to the Church Council. The Church Council shall then determine
whether to place the proposal to terminate the Endowment Fund on the agenda for the next
congregation meeting. Any proposal for termination of the Endowment Fund must be published at least two (2) weeks prior to a congregation meeting and receive a favorable vote from a majority of the members present at said meeting.
2. Distribution upon Termination
The Church Council, after consulting with the Endowment Committee, shall recommend the
manner of distribution of funds in the event of Endowment Fund termination. The distribution of funds shall be made to further the mission of CMC and shall not inure to the benefit of any
individual member. The manner of distribution recommended by the Church Council shall require the approval of a majority of the members present at a congregation meeting.